November 2003 Producer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Bureau of Labor Statistics of the U.S. Department of Labor reported today that the seasonally adjusted Producer Price Index for Finished Goods declined 0.3 percent in November. This decrease followed five consecutive increases -- including a 0.8-percent rise in October and a 0.3-percent increase in September. At the earlier stages of processing, prices received by manufacturers of intermediate goods edged down 0.2 percent in November, compared with a 0.4-percent gain in October. The index for crude goods increased 0.2 percent, after climbing 2.6 percent in the preceding month. (See table A.)

Among finished goods, prices for finished consumer foods fell 0.3 percent in November, following a 2.2-percent jump in October. The index for finished goods other than foods and energy also turned down -- inching 0.1 percent lower in November, after rising 0.5 percent in the prior month. Prices for finished energy goods decreased 1.2 percent, compared with a 0.1- percent decline in the previous month.

Before seasonal adjustment, the Producer Price Index for Finished Goods moved down 0.7 percent to 144.5 (1982=100). From November 2002 to November 2003, finished goods prices advanced 3.4 percent. Over the same period, the index for finished consumer foods climbed 7.9 percent, prices for finished energy goods went up 9.9 percent, and the index for finished goods other than foods and energy rose 0.5 percent. Prices received by intermediate goods producers increased 3.3 percent, while the crude goods index jumped 18.3 percent for the 12-month period ended in November 2003.

Finished goods

Subsequent to a 2.2-percent gain in October, the index for finished consumer foods declined 0.3 percent in November. The majority of this downturn can be traced to prices for beef and veal, which fell 4.7 percent in November, following an 18.3-percent surge a month earlier. The indexes for pork and eggs for fresh use also decreased, after advancing in October. Price increases for fresh fruits and melons, processed young chickens, and for shortening and cooking oils slowed from October to November. Conversely, prices for fresh and dry vegetables decreased 5.2 percent in November, compared with a 9.1-percent drop in October. The index for finfish and shellfish also fell at a slower pace in November than it did in the prior month. Prices for dairy products and processed turkeys rose more rapidly than they did in the previous month.

The index for finished consumer goods other than foods and energy showed no change in November, after registering a 0.6-percent gain in October. Prices for passenger cars turned down 0.8 percent in November, following a 1.6-percent rise in October. The index for light motor trucks increased 1.0 percent, after a 3.4-percent advance in the preceding month. Cigarette prices rose at a slower rate in November than they did in the previous month. The indexes for pharmaceutical preparations, women's apparel, and household appliances turned down, following October increases. Prices for men's and boys' apparel and newspaper circulation were unchanged in November, after rising a month earlier. On the other hand, the index for soaps and synthetic detergents moved up at a 0.6-percent rate, compared with a 0.2-percent decrease in October. Prices for lawn and garden equipment (except tractors) advanced at a quicker pace in November than they did in the prior month.

The capital equipment index inched down 0.1 percent in November, following a 0.6-percent rise in October. Prices for passenger cars, heavy motor trucks, communication and related equipment, agricultural machinery and equipment, commercial furniture, and civilian aircraft turned down in November, after rising in the prior month. The index for light motor trucks rose less than it did in October. By contrast, the index for integrating and measuring instruments edged up 0.1 percent, compared with a 0.7-percent decrease in October. Prices for metal cutting machine tools also increased in November, after falling a month earlier. The indexes for x-ray and electromedical equipment and for electronic computers declined at a slower rate than they did in the previous month.

Prices for finished energy goods decreased 1.2 percent, following a 0.1-percent decline in October. Gasoline prices fell 4.8 percent in November, following a 3.0-percent decrease in the preceding month. The indexes for home heating oil, diesel fuel, and kerosene fell, after rising a month earlier. Prices for residential electric power and liquefied petroleum gas increased at a slower pace than they did in October. By contrast, the index for residential natural gas moved down 1.1 percent in November, compared with a 1.8-percent decline in the prior month.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components decreased 0.2 percent in November, after increasing 0.4 percent in October. The index for intermediate energy goods contributed heavily to this reversal by turning down in November. Prices for nondurable manufacturing materials and intermediate foods and feeds advanced more slowly than in the preceding month. On the other hand, both the durable manufacturing materials index and the construction materials index rose at a faster rate than in the prior month. Excluding food and energy, the intermediate goods index increased 0.2 percent in November, after rising 0.3 percent in October. (See table B.)

The index for intermediate energy goods turned down 2.9 percent in November, following a 0.6-percent gain in October. The November index for commercial electric power declined 4.0 percent, after moving up 2.7 percent in the prior month. Prices for diesel fuel and industrial electric power also turned down, after moving up in the preceding month. The indexes for industrial natural gas, natural gas to electric utilities, and gasoline fell more quickly in November than they did in October. By contrast, the commercial natural gas index decreased 2.3 percent in November, following a 3.1-percent drop in October.

The index for materials for nondurable manufacturing rose 0.2 percent in November, after increasing 0.7 percent in October. Prices for liquid refinery gases declined 3.3 percent, following a 4.8-percent climb in the prior month. The sulfuric acid index also turned down, after October increases, as did the indexes for gray fabrics and synthetic rubber. Alternatively, the index for paper rose 0.4 percent, after a decline of 0.4 percent in October. Prices for medicinal and botanical chemicals increased more in November than they did in the preceding month, while indexes for finished fabrics and for processed yarns and threads turned up.

The November intermediate foods and feeds index rose 2.7 percent, following a 3.1-percent gain in October. Beef and veal prices slipped 4.7 percent, after jumping 18.3 percent in the preceding month. The indexes for pork and for refined sugar and byproducts also turned down in November, while the index for shortening and cooking oils rose less quickly. On the other hand, prices for prepared animal feeds jumped 7.0 percent, after gaining 1.1 percent in October. The November indexes for crude vegetable oils, flour, and confectionery materials rose, following decreases in the prior month.

Prices for materials and components for construction increased 0.5 percent in November, after rising 0.3 percent in October. Softwood lumber prices gained 1.3 percent, following a 1.9-percent decrease in the preceding month. Indexes for gypsum products and for paving mixtures and blocks also rose, after declining in October, while prices for concrete products and for nonferrous wire and cable rose more in November than they did in October. Conversely, plywood prices decelerated -- rising 1.0 percent, after gaining 5.4 percent in October. Indexes for plastic construction products and steel mill products also rose less in November, and the indexes for fabricated structural metal products and for air conditioning and refrigeration equipment turned down.

Prices for materials for durable manufacturing increased 0.8 percent in November, following a 0.6-percent gain in October. The index for copper and brass mill shapes rose 3.1 percent, after advancing 1.4 percent in the prior month. Prices for cold rolled steel sheet and strip and for copper cathode and refined copper also rose more quickly than they did in October. Hardwood lumber prices turned up, after falling in October. Alternatively, the index for hot rolled bars, plates, and structural shapes increased 1.2 percent, compared with a 3.3-percent advance in the prior month. Prices for building paper and board inched down, after rising in October.

Crude goods

The rate of increase in the Producer Price Index for Crude Materials for Further Processing slowed from 2.6 percent in October to 0.2 percent in November. In November, rising prices for crude nonfood materials less energy outweighed falling prices for crude energy materials and crude foodstuffs and feedstuffs. (See table B.)

The index for basic industrial materials advanced 4.3 percent in November, after posting a 3.1-percent gain in the previous month. Leading this acceleration, iron and steel scrap prices jumped 13.8 percent, following a 4.7-percent rise in the prior month. The indexes for copper base scrap, nonferrous metal ores, and leaf tobacco also increased at a faster pace in November than they did in October. Prices for phosphates moved up, after falling a month earlier. On the other hand, the rate of increase in the index for raw cotton decelerated from 23.5 percent in October to 6.9 percent in November. Prices for aluminum base scrap and pulpwood also rose less than they did in the preceding month. The indexes for hides and skins and for softwood logs, bolts, and timber turned down, following gains a month earlier.

Prices for crude energy materials declined 1.5 percent in November, compared with a 3.6-percent drop in the prior month. The natural gas index moved down 1.3 percent, following a 9.4-percent decrease in the previous month. By contrast, crude petroleum prices turned down 2.3 percent in November, after rising 6.8 percent a month earlier. The coal index fell 0.6 percent, following a 0.8-percent gain in October.

Prices for crude foodstuffs and feedstuffs edged down 0.1 percent in November, following an 8.9-percent increase in the preceding month. The index for slaughter cattle was the largest factor in this downturn -- decreasing 6.6 percent, after rising 20.4 percent in the previous month. Prices for slaughter broilers and fryers also fell, following gains a month earlier. The indexes for soybeans, fluid milk, and fresh fruits and melons advanced at a slower rate in November than they did in the prior month. Unprocessed finfish prices decreased more than they did in October. Alternatively, the corn index rose 7.9 percent in November, compared with a 12.2-percent drop in the preceding month. Prices for slaughter hogs, wheat, and unprocessed shellfish also turned up, following declines in October. The fresh and dry vegetables index fell less in November than it did a month earlier.

Net output price indexes for mining, manufacturing, and services industries

Mining. For the month of November, the Producer Price Index for the Net Output of Total Mining Industries decreased 0.9 percent, after falling 2.4 percent in October. (Net output price indexes are not seasonally adjusted.) The rate of decline in prices for the natural gas liquids and natural gas residue industry also slowed in November -- dipping 0.2 percent, compared with a 6.5-percent drop a month earlier. The industry indexes for potash, soda, and borate minerals and for gold ores turned up, after declining in the prior month. Prices received by the copper ores industry advanced at a faster rate in November than they did in October. Conversely, the industry index for crude petroleum and natural gas decreased 2.1 percent in November, following a 1.5-percent decline in the preceding month. The index for bituminous coal and lignite mining industries moved down, after rising in October. The index for the oil and gas field services industry increased at a slower pace than it did in the previous month. In November, the Producer Price Index for the Net Output of Total Domestic Mining Industries was 122.1 (December 1984=100), 10.5 percent above its year-ago level.

Manufacturing. Subsequent to a 0.9-percent gain in October, the Producer Price Index for the Net Output of Total Manufacturing Industries fell 0.4 percent in November. The index for the transportation equipment industry group decreased 0.4 percent, following a 3.6-percent advance in the previous month. The industry group indexes for textile mill products and machinery (except electrical) also turned down, after rising in the previous month. Prices received by the food and kindred products industry group showed no change in November, after rising in October. The index for the petroleum refining and related products industry group fell more quickly during the same period. By contrast, prices for the paper and allied products industry group increased 0.2 percent, after declining by the same rate in October. The industry group index for stone, clay, glass, and concrete products also turned up in November, following a decline in the prior month. Rising prices for the primary metals industry group accelerated from October to November. The Producer Price Index for the Net Output of Total Domestic Manufacturing Industries was 137.7 (December 1984=100) in November, 2.3 percent above its year-ago level.

Services. Among service industries in November, advancing prices were registered by the industries for property and casualty insurance; life insurance carriers; truck rental and leasing; cable and other pay television services; engineering design, analysis, and consulting services; trucking (except local); and radio broadcasting. By contrast, falling prices were experienced by the industries for hotels and motels, deep sea foreign transportation of freight, telephone communications (except radiotelephone), general medical and surgical hospitals, television broadcasting stations, and for operators and lessors of nonresidential buildings.

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NAICS Conversion

The net output price indexes will be converted from the 1987 Standard Industrial Classification (SIC) basis to the 2002 North American Industry Classification System (NAICS) basis with the February 2004 release of January 2004 indexes. The NAICS conversion involves major definitional changes to many of the currently published SIC-based indexes. After the conversion to NAICS, SIC-based indexes will no longer be produced or published. Historical index data based on the NAICS publication structure will be available depending on the scope of the definitional changes between SIC and NAICS. A concordance between the two structures is available at http://www.bls.gov/ppi/ppinaicstosic.htm through a World Wide Web site.